Why it is Important To Check Claim Settlement Ratio?

Are you going to buy new term plan? Well before you buy your new term plan, do mind to check certain things. Apart from term plan’s conditions, rules etc you must look for the claim settlement ration. Yes, it is quite important to check the claim settlement ratio before you buy your new term plan.

Term insurance plan is one of the best ways to insure your future and your family’s life. Term plans are quite cheaper nowadays, you can start securing your future with just Rs.14 per day to get Rs.1 crore of term plans (sounds good right?).

Yes, term plans are good to have for you and your family but you must check the important things like claim settlement ratio before buying term plans.

IRDA (insurance regulatory & development authority) releases claim settlement ratio data’s of all the insurance company. Claim settlement ratio mentions the total claims done to insurance company and how many of them are fulfilled.

This will insure you that whenever you need to require claiming your insurance, you or your family members don’t need to hectic much and your claim will be passes easily. You can also find out about the insurance companies which are not good at providing claim amounts easily, this way you can filter out some bad insurance companies as well.

How to find out the Claim settlement ratio?

As mentioned above, every year IRDA announces claim settlement ratio for all the insurance company in India. So for example, if you have liked Max life insurance’s term plan, you can search for claim settlement ratio of Max life insurance company (Indiasage.in have provided 2016-17 claim settlement ratio on their site).

So from the list of claim settlement ratio, you can find the data like number of policies sold on that year, amount paid by insurance company, number of claims approved on the current year.

Yes, out of all you need to check percentage of claims paid by the insurance company. That’s what the claim settlement ratio is all about. You need to check which company approved the claims the most.

This way you will get best out of your money and you will get your claim approved easily. This is the reason why we are emphasizing on the people who are buying new term insurance plan. Term insurance plans are good for future and everyone should must buy it but make sure you don’t get scammed for this.

There are many fraud happening with term insurance, insurance company make false promise to sell term insurance and customers like us has to face problems when you need to pass the claim.

So, always read the insurance terms carefully before you buy it. Also, checking claim settlement ratio is one the best thing you need to check (even you are buying term insurance online).